Fall River mayor charged with extorting $600,000 from pot companies

By Peter Jasinski

Friday

Sep 6, 2019 at 9:12 AMSep 7, 2019 at 12:28 PM

BOSTON — Fall River Mayor Jasiel Correia, his chief of staff and three other alleged co-conspirators have been charged in what federal investigators are referring to as a vast criminal conspiracy to extort money from marijuana dispensaries and others in Fall River.

“If the allegations in today’s indictments are true, Mayor Jasiel Correia has engaged in an outrageous, brazen case of corruption,” U.S. Attorney Andrew Lelling said in a Friday morning press conference.

Correia, 27, who pleaded not guilty in U.S. District Court Friday afternoon, has been charged in a superseding indictment with bribery; extortion conspiracy; extortion and aiding and abetting; wire fraud; and filing false tax returns, 24 counts in all. He was arrested and charged a first time in October 2018 for his involvement in an alleged scheme to defraud investors in his smartphone app company SnoOwl.

Correia was arrested at his Fall River home early Friday morning. Genoveva Andrade, 48, of Somerset, the mayor's former chief of staff, was also arrested Friday and charged in a criminal complaint with extortion conspiracy; extortion; theft and bribery; and providing false statements to investigators. Andrade appeared in court, but was not arraigned, nor did she enter a plea. She was released on $150,000 unsecured bond, and under the condition that she cannot leave Massachusetts or Rhode Island.

According to Lelling, Correia and Andrade worked to extort hundreds of thousands of dollars from private citizens trying to open marijuana dispensaries in Fall River, as well as money from a property owner who was seeking various building permits from the city. In total, Lelling said Correia’s bribes made up roughly $600,000 in cash, plus a $10,000 "Batman" Rolex watch.

Correia has also been accused of taking kickbacks from Andrade, who Lelling said Correia asked to provide him with half her $78,000 salary.

"Public officials, even in seemingly minor roles, can have tremendous power over the lives of private citizens," Lelling said. "If you have that power and use it to exploit private citizens or line your own pockets, we will prosecute you."

Correia was released on a $250,000 secured bond, 10% of which, or $25,000, must be paid by the end of business Tuesday. The mayor also was ordered to remain within Massachusetts and Rhode Island, and to have no contact with witnesses or victims associated with the case.

But unlike his last court appearance and subsequent press conference where he gave a "thumbs up" to reporters and cameras, appearing confident and joking with the crowd, Correia was more subdued Friday.

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With his criminal defense attorney, Kevin Reddington, at his side, the mayor showed none of the swagger exhibited last October.

"I'm not guilty of these charges. I've done nothing but good for the great City of Fall River and me and my staff and my team are going to continue to do great things for our city. That's all I have to say," said Correia, adding he would not resign.

Reddington had a few words regarding the federal prosecutor's case , saying, "It reads like a bad John Grisham novel."

"From my point of view any number of people were interrogated, questioned, threatened with charges," said Reddington.

Of the case against Correia, Reddington said there was "no corroboration, no physical evidence, there's no legitimate witness."

Reddington also questioned the timing of the indictment and arrest of Correia, who is facing a preliminary election Sept. 17.

After speaking to reporters, Correia and Reddington, mobbed by a scrum of media, slipped into a nearby Starbucks.

In the morning press conference, Lelling described Fall River as having become a “pay-to-play institution” under Correia, who serves as the city’s sole approving authority in granting letters of non-opposition and host community agreements to prospective marijuana retailers. These two documents are required for any business seeking a marijuana sales license from the state.

At least four marijuana companies, Lelling said, agreed to pay Correia cash bribes in exchange for letters of non-opposition.

“Correia had sole discretion to issue these letters and he did issue them, but only if he got paid first,” said Lelling.

Joseph Bonavolonta, special agent in charge of the FBI, detailed Friday how Andrade allegedly played a part in soliciting and collecting bribes from marijuana companies.

“She also allegedly conspired with Correia to extort a $150,000 bribe from one of the marijuana retailers, closing out the deal, saying, quote: ‘You’re family now,’” Bonavolonta said.

Bonavolonta and Lelling confirmed the investigation into Correia is ongoing.

“This was a complex and demanding investigation and it is far from over,” Bonavolonta said, urging any member of the public with additional information to come forward to investigators.

In addition to Correia and Andrade, three other alleged co-conspirators have been charged.

Antonio “Tony” Costa, 51, of Fall River; Hildegar Camara, 58, of Fall River; and David Hebert, 54, of Westport were all charged separately with extortion and providing false statements to investigators. According to a statement from Lelling’s office, Costa, Camara and Hebert will appear in court at a later date.

Correia is one of three mayoral candidates in this year's election. His opponents are Paul Coogan and Erica Scott-Pacheco. A preliminary election is scheduled for Sept. 17.

Update: This story has been updated to correct and clarify details on the nature of Andrade's hearing.

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